Abstract [en]

Within the wholesale sector, the distribution is often associated with difficulties, such as many customers and a requirement for short lead times. A lot of customers also demand delivery within certain time windows. These factors all contribute to a high level of strain on the logistics.

In general, the amount of computer usage within the transportation industry is relatively low. However, advanced information systems are available for order handling and inventory management, and a lot of software for distribution planning and vehicle routing have surfaced as of recently. These often combine digital maps and optimization algorithms, and can be used for calculating optimized routes within the distribution.

Servera R&S is a wholesale company with a number of warehouses in different parts of Sweden. As of lately, their clientele in Stockholm has expanded, and the number of delivery points have increased drastically. The customers in Stockholm are provided with goods from warehouses in Norrköping and Västerås. The goods from Norrköping passes through a transfer terminal in Årsta before it is delivered to the customer in Stockholm.

Servera R&S is requesting an analysis of their distribution in Stockholm. They want to determine whether their distribution strategies are economically effective or not. Within this study, we aim to analyze different distribution strategies, which may or may not result in improvements of the efficiency of the distribution process. The purpose is to find solutions that better use the recourses of the distribution network (i.e. vehicles and personnel etc.), increase the level of delivery service and reduce the transportation costs.

A survey analysis was carried out to map work methods and procedures within the distribution process. Interviews and surveys were used in the process of creating a basis for the optimization tool. Simulations were performed in an attempt to demonstrate the possibilities for decreasing distribution costs through the use of a vehicle routing program. During the analysis, the distribution process and the results from the simulations were studied with an aim to find possible improvements in the way that goods and information are handled within the warehouses and during the transports.

The study shows a lot of possibilities for improvements within the distribution process. The route optimization prove a potential for decreasing costs regarding transportation time, distances and the number of vehicles used within the distribution. For example, the simulations show that the distances can be decreased with as much as 30 percent.